Planet 13 in Prime Position: Beacon Analyst Maintains $7.25 Price Target

Planet 13

Planet 13 stock is one of the biggest pot stock gainers for 2019, with a gain of over 110% year to date.

Planet 13 Holdings (CSE:PLTH) (OTCQB:PLNHF) has been doing well since it opened its marijuana “Super Store” in Las Vegas about six months ago, according to Doug Cooper of Beacon Securities.

Cooper Sets Price Target of $7.25

In a research note to clients, the analyst maintained his buy position for Planet 13 stock as well as his one-year price target of $7.25 CAD, a 120% potential upside from the current market price of $3.34 CAD. Cooper indicates that Planet 13 Holdings reported over 100,000 visitors to its outlet in Las Vegas in March. This is a phenomenal figure, and with the company spending on average $89.17, it managed to generate revenue of $5.5 million for the month.

The Beacon Securities analyst says that Planet 13’s cannabis sales in Nevada in January were $15.9 million, which puts the company’s market share in the state at 10.5%. According to Cooper, the company’s strategic positioning makes it an acquisition target.

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In the note to investors, Cooper reports that Nevada, and Las Vegas in particular, is an important strategic region for multistate operators. The analysts believe that Las Vegas is and will continue to be one of the major cannabis cities globally and therefore it is necessary for multistate operators to establish their presences in the region.

Planet 13 Future Prospects

The number of cannabis assets available for acquisition in Las Vegas is declining with the purchase of Essence by Green Thumb Industries (CSE:GTII) and Curaleaf (CSE:CURA) buying Acres. With assets shrinking, those remaining have increased their value significantly, including Planet 13. Therefore, it stands to reason that many multistate operators would be interested in purchasing Planet 13 because of its growing market share in Nevada.

Planet 13 Holdings has positioned itself well in Las Vegas owing to the significant number of tourists who visit the city. The company’s growing brand portfolio has considerable value because key brands in the cannabis market attract high sales.

Cooper maintains his buy position and $7.25 CAD price target for Planet 13 stock based on the FY2020 EBITDA estimate of 38 million.

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